Gulf Oil Corporation Ltd., today outlined plans to set up another manufacturing unit for lubricants in South India with an investment of Rs.150 crore complimenting its existing plant at Silvassa.
The company recently completed a corporate restructure process with explosives division hived off into a subsidiary. The focus new strategy is to focus on lubricants division embarking on expansion while growing the explosives business by bringing in a strategic partner.
“As a part of the restructure process, it had also hived of its pharmaceuticals business to Biocon. Post restructure, we are now looking at next phase of growth with lubricants playing a larger role,” Mr. Subhas Pramanik, Managing Director of Gulf Oil Corporation, said.
Speaking to newspersons, he said “the co-branding of lubricants with Ashok Leyland Ltd., and later with Mahindra & Mahindra has begun to yield good results. We see co-branding as a growth opportunity. The marketing spend of Rs. 33 crore for financial year 2011 and our partnership with IPL cricket teams of Punjab and Chennai had positive impact on the lubricants business.”
“The lubricant business recorded a turnover of Rs. 681 crore in FY 2011 up from Rs. 564 crore a year before. The investments in capacity addition, marketing and partnerships and co-branded lubricant business will ensure that this division grows by 20-25 per cent this year,” he said.
Referring to the explosives division, which is now handed through a fully owned subsidiary, IDL Explosives Ltd., Mr. Santhanam Subramanian, Chief Financial officer, said “we will bring in a strategic partner to expand this division and consolidate its business.”
Last fiscal, the company closed with a consolidated top line of Rs. 1214 crore and expects to close this year at around Rs. 1500 crore, with lubricants business as a key volume driver, he said. The company management expects its mining business to turnaround this year.
REAL ESTATE
Gulf Oil is set to commence work on its mixed use Bangalore property within two months along with its group company Hinduja Estates. The project would see an investment of Rs. 1350 crore for development of about 5 million sq.ft of mixed use. It will be taken up on a 30:70 per cent basis.
“With regard to Hyderabad property development, we are in the process of finalising plans including partnering with a developer and investments,” Mr.Pramanik said.